Funds Managed by Ares Have Provided Substantial Equity Commitment to
Pure-Play Delaware Basin Midstream Company
HOUSTON--(BUSINESS WIRE)--
Ares Management, L.P. (NYSE:ARES) (“Ares”) and ARM Energy
Holdings, LLC (“ARM Energy”) today announced a partnership to develop
Salt Creek Midstream, LLC (“Salt Creek” or the “Company”) in the
Delaware Basin. The Company is owned by funds managed by the Ares
Private Equity Group and ARM Energy. ARM Midstream Management, LLC, a
subsidiary of ARM Energy, will serve as operator of the project.
Once fully operational, Salt Creek will primarily be comprised of
multiple cryogenic processing facilities, as well as gas and crude
gathering pipelines, compression and treating facilities. The initial
phase of the project is expected to be commissioned in April 2018, and
by the end of 2018, Salt Creek is expected to have 260 million cubic
feet per day of processing capacity, with additional expansion
investments planned as producers are added to the system.
To date, Salt Creek has secured commitments for more than 250,000
dedicated acres from multiple Delaware Basin producers, which the
Company expects will provide decades of high-return drilling inventory,
driving additional project growth and scale in a rapidly expanding basin.
ARM Energy’s CEO Zach Lee said, “We are thrilled to partner with Ares on
this important initiative, and are confident it will create long-term
value for ARM Energy, Ares and our other partners. ARM’s downstream
intelligence and in-depth fundamentals analysis provided us with the
insight to identify Salt Creek as a unique midstream offering for
Delaware Basin producers as we continue to build world-class midstream
assets spanning the entire basin, as well as downstream market solutions
for residue gas, NGLs and crude. We believe the rapid development of the
Salt Creek project, on the heels of our successful development and sale
of Kingfisher Midstream, demonstrates our agility, efficiency and
integrated approach in evaluating and capitalizing on market
opportunities.”
Ares’ Nate Walton, Partner and Co-Head of North American Private Equity,
said, “Ares is excited to collaborate with the ARM Energy team on Salt
Creek Midstream, which is located in one of the most prolific energy
plays in North America. We believe that this company will benefit from
the combination of our industry experience and long-term relationships
in the sector as well as ARM’s extensive midstream, downstream and
marketing knowledge.”
Salt Creek Midstream, LLC also announced the successful close of its
$350 million term loan facility. Deutsche Bank acted as sole arranger
and underwriter of the credit facility, the proceeds from which will be
used to fund further development and expansion of the project in the
Delaware Basin. Key phases of Salt Creek’s development plan will
continue to enter service throughout 2018.
About Salt Creek Midstream, LLC
Formed in 2017, Houston-headquartered Salt Creek Midstream, LLC is a
joint venture of ARM Energy Holdings LLC and funds managed by Ares
Management, L.P. Salt Creek is a full service midstream provider,
offering gas and crude gathering, compression, cryogenic processing and
treating services. The greenfield development project spans more than
250,000 acres across Culberson, Reeves, Ward, Winkler, Lea,
Pecos, and Eddy Counties within the Delaware Basin.
About Ares Management, L.P.
Ares Management, L.P. is a publicly traded, leading global alternative
asset manager with approximately $106.4 billion of assets under
management as of December 31, 2017 and 18 offices in the United States,
Europe, Asia and Australia. Since its inception in 1997, Ares has
adhered to a disciplined investment philosophy that focuses on
delivering strong risk-adjusted investment returns throughout market
cycles. Ares believes each of its three distinct but complementary
investment groups in Credit, Private Equity and Real Estate is a market
leader based on assets under management and investment performance. Ares
was built upon the fundamental principle that each group benefits from
being part of the greater whole. For more information, visit www.aresmgmt.com.
About ARM Energy Holdings, LLC
Headquartered in Houston, with offices in Calgary, Denver, Midland, and
Pittsburgh, ARM Energy is a premier producer services firm, active in
every sector of the energy value chain across all major North American
oil and gas basins. Its integrated, diversified portfolio includes Asset
Risk Management, LLC, providing risk management and hedging strategies
for producers; ARM Energy Management LLC, providing physical oil and gas
marketing, transportation and asset management services and trading; and
ARM Midstream, LLC, providing midstream investment, infrastructure
development and operations. www.armenergy.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180416005485/en/
For Ares Management
Media:
Mendel Communications
Bill
Mendel, 212-397-1030
[email protected]
or
Investors:
Ares
Management, L.P.
Carl Drake, 800-340-6597
[email protected]
or
For
ARM Energy:
Sard Verbinnen & Co
Kelly Kimberly,
+1-832-680-5120
[email protected]
or
Paul
Frankle, +1-415-618-8750
[email protected]
Source: Ares Management, L.P.
